There has been speculation that Israeli hotels might actually profit from the coronavirus outbreak with Israelis vacationing at home more than offsetting overseas tourist cancellations. But Dan Hotels (TASE: DANH) has punctured that notion by notifying the Tel Aviv Stock exchange that it expects a fall in operational profit compared with the corresponding quarter of 2019. Dan Hotels cites cancelled bookings due to the coronavirus outbreak and a fall in future books as the main reason for the profit warning. No specific estimates of the actual financial damage were mentioned.
So far airlines, travel agencies and hotels chains are the hardest hit by the economic repercussions of the Covid-19 virus outbreak, which began in China and has quickly spread to the rest of East Asia, Europe and North America.
Meanwhile the Olive and Rimonim hotel chains in Israel are allowing guests to book rooms for any time during March and April, except the Passover, holiday, and cancel up to 48 hours before arrival without paying any penalty.
Olive and Rimonim Hotels VP Adele Edri said that the offer is due to the uncertainty surrounding everybody's vacation plans. "The question being asked during almost every phone conversation to our bookings center is what will happen if we can't come."
She added, 'Many people are uncertain in the current situation. To fly or not to fly. To commit to a vacation in Israel or not to commit. Every day new places are added to the list of people who must go into quarantine. So we decided with our two chains to help out holidaymakers and get rid of cancellation fees and let people book in advance with peace of mind and know that they have rooms available in the chain's hotels."
Published by Globes, Israel business news - en.globes.co.il - on March 4, 2020
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